Who Is a Financial Accountant?

Who Is a Financial Accountant?

Over time, accounting has branched into various fields, one of which is financial accounting.
Financial accounting is a universal language for reporting. Its job is to record, classify, and summarize all financial events of an organization based on specific standards (such as Iran's accounting standards or international IFRS). A financial accountant is a specialist who puts this knowledge into practice. They work with financial data.
They must deliver all this data in a comprehensive report. So collecting financial information and presenting it is the most important task of a financial accountant.
Financial information and reports must be recorded and prepared accurately based on valid documents and evidence so that the financial statements are reliable and defensible.
So in short, a financial accountant records all of a company's income and expenses according to the law, so that at the end of the year, they can provide a clear report to the bank, the tax office, and shareholders, showing "how much money the company has and how much profit or loss it has made."

A Financial Accountant's Monthly Tasks:

1. Collects and records documents: Codes and enters every purchase invoice, bill, receipt, and bank transfer into the accounting software.
Today's financial accountant works with software such as Hamkaran System, Sepidar, Parsian and Arya software, etc., and all entries are made in these systems.

2. Reconciles bank and accounts: Compares the company's bank account transactions with the bank statement to ensure no errors have occurred. Also monitors customer debts and supplier claims.

3. Calculates salaries and taxes: Calculates employee salaries, deducts insurance and taxes, and reports them to the relevant organizations.

4. Prepares final reports at month-end or year-end: Prepares the balance sheet and income statement so company managers can understand the financial situation and auditors or the tax office can review them.

For a better understanding, let's give a simple example. What is the difference between financial accounting and management accounting?

Simply put, a financial accountant looks to the past and reports what happened, while a financial manager looks more to the future and decides what should be done. This is just a simple example to understand the different perspectives of these two fields.
So if we want to explain it very simply, we can say that a financial accountant is like a security camera that constantly films all of the company's transactions, but at the end of the year, turns that footage into a clear visual report (financial statements) so everyone can see whether the company is healthy or sick.

What is the difference between a financial accountant (company employee) and a certified accountant (independent auditor)?

- The auditor is a contractor hired for a limited period.
- They review the financial statements and give an opinion (saying whether they are correct or not). They only come for a few weeks at year-end to check the documents.
- They are a supervisor.
But the financial accountant:
- Is a company employee.
- Prepares the financial statements.
- Deals with data on a daily basis.
- Is on the company's side.

Learning Path for This Career:

To enter this profession, a person must master three levels in order:
1. Financial Accounting (1, 2, and 3) — for correct recording of transactions.
2. Advanced Accounting — for complex transactions (such as company mergers).
3. Accounting Standards — for awareness of current regulations.